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Maryland Water Utility Sues Alleged Chemical Company Cartel

The largest water utility in Maryland has sued a group of chemical companies for allegedly conspiring to inflate the prices of a water treatment chemical.

Meagan Parrish
Oct 23, 2017

The largest water utility in Maryland has sued a group of chemical companies for allegedly conspiring to inflate the prices of a water treatment chemical.

According to the lawsuit, Washington Suburban Sanitary Commission (WSSC) lost millions due to a price-fixing and bid-rigging scheme that lasted 14 years.

WSSC claims that it overpaid for aluminum sulfate (alum), a key chemical used to treat sewage and purify water. The lawsuit claims that chemical company executives openly discussed bids with each other and presented artificially high “throwaway” bids to move the customer to the intended company. Ultimately, WSSC claims that the companies managed to inflate the price of alum from about $82 per ton to $314 per ton.

The companies named in the lawsuit include:
ChemTrade Chemicals
Geo Specialty Chemicals
C&S Chemicals
RGM Chemical
Kemira Chemicals
Southern Ionics
Usalco and Delta Chemical Corp.
General Chemical Corp. and some affiliates.

WSSC alleges that the price-fixing caused the utility to “lose millions” from 1997 to 2016.

WSSC is asking for $5 million in damages and penalties.

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